Japan’s equity markets opened weaker this morning, following declines across Asia and subdued overnight signals from Wall Street. Both the Nikkei 225 and the broader TOPIX index came under pressure as investors reacted to concerns over global interest rates, inflation and risk appetite.
Nikkei slips in early trading
The Nikkei 225 began the session slightly higher than Tuesday’s close but quickly reversed into negative territory. By mid-morning, the index was down around 0.4 per cent, reflecting cautious positioning from investors. Technology shares and cyclical stocks led the retreat, mirroring the sectoral downturn seen in U.S. markets overnight.
TOPIX mirrors the downward trend
The TOPIX index also opened lower, weighed down by selling across export-oriented companies and financials. Analysts noted that sector rotation was evident, with defensive names holding up better while growth-linked shares weakened. The movement highlights persistent caution among domestic and foreign investors in Tokyo.
Global cues dominate local markets
The broader pullback follows Federal Reserve Chair Jerome Powell’s recent remarks about inflation risks and high equity valuations, which unsettled global markets. U.S. bond yields remain elevated, adding pressure to risk sentiment. Asian peers also opened in the red, reinforcing the cautious start in Tokyo.
Key factors to watch
Traders in Japan will monitor the yen’s movements against the U.S. dollar, as well as oil price trends and forthcoming U.S. economic data. With the Bank of Japan maintaining its gradual policy adjustments, the domestic backdrop remains stable, but external headwinds continue to dictate direction.
Newshub Editorial in Asia – 24 September 2025
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